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| Teaching Since: | May 2017 |
| Last Sign in: | 340 Weeks Ago |
| Questions Answered: | 19234 |
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MBA (IT), PHD
Kaplan University
Apr-2009 - Mar-2014
Professor
University of Santo Tomas
Aug-2006 - Present
Your company has decided to produce a new line of television/electronic media player. You estimate that your company will sell 51,000 per year, and that this product will sell for $750 each. The plant and equipment (new fixed assets) needed to manufacture this product costs $22,400,000 and will be depreciated on a straight-line basis over the seven year project. Additional manufacturing costs to produce the media players would total $16,980,000 each year. The tax rate is 40%. Sketch a simplified income statement and calculate the firm’s operating cash flow.
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